Wolfspeed (NYSE:WOLF) Shares Gap Down After Analyst Downgrade

Wolfspeed, Inc. (NYSE:WOLF) shares gapped down prior to trading on Thursday after Susquehanna lowered their price target on the stock from $11.00 to $7.00. The stock had previously closed at $6.18, but opened at $5.90. Susquehanna currently has a neutral rating on the stock. Wolfspeed shares last traded at $5.86, with a volume of 1,603,217 shares changing hands.

A number of other research firms have also recently commented on WOLF. The Goldman Sachs Group reduced their price target on Wolfspeed from $19.00 to $17.00 and set a “buy” rating for the company in a report on Thursday, January 16th. Canaccord Genuity Group cut their price target on Wolfspeed from $25.00 to $18.00 and set a “buy” rating for the company in a research note on Thursday, November 7th. StockNews.com upgraded Wolfspeed to a “sell” rating in a research note on Monday, January 6th. Piper Sandler reiterated an “overweight” rating and issued a $18.00 price target (down from $20.00) on shares of Wolfspeed in a research note on Thursday, November 7th. Finally, Roth Mkm cut their price target on Wolfspeed from $25.00 to $20.00 and set a “buy” rating for the company in a research note on Thursday, November 7th. Three analysts have rated the stock with a sell rating, ten have issued a hold rating and four have issued a buy rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $16.79.

Insider Activity at Wolfspeed

In other news, Chairman Thomas H. Werner purchased 37,500 shares of the business’s stock in a transaction on Wednesday, November 20th. The shares were acquired at an average price of $6.53 per share, with a total value of $244,875.00. Following the completion of the transaction, the chairman now owns 108,549 shares of the company’s stock, valued at $708,824.97. The trade was a 52.78 % increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Glenda Dorchak purchased 3,592 shares of the business’s stock in a transaction on Friday, November 22nd. The shares were purchased at an average cost of $8.33 per share, for a total transaction of $29,921.36. Following the transaction, the director now directly owns 18,688 shares of the company’s stock, valued at approximately $155,671.04. The trade was a 23.79 % increase in their position. The disclosure for this purchase can be found here. Insiders purchased 78,067 shares of company stock worth $524,747 over the last three months. Company insiders own 0.84% of the company’s stock.

Hedge Funds Weigh In On Wolfspeed

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Primecap Management Co. CA lifted its position in Wolfspeed by 5.0% in the 3rd quarter. Primecap Management Co. CA now owns 6,349,180 shares of the company’s stock valued at $61,587,000 after acquiring an additional 303,870 shares in the last quarter. Two Sigma Advisers LP raised its holdings in shares of Wolfspeed by 813.6% in the 3rd quarter. Two Sigma Advisers LP now owns 2,458,600 shares of the company’s stock worth $23,848,000 after purchasing an additional 2,189,500 shares during the period. Charles Schwab Investment Management Inc. raised its holdings in shares of Wolfspeed by 2.5% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 871,191 shares of the company’s stock worth $8,451,000 after purchasing an additional 21,143 shares during the period. Connor Clark & Lunn Investment Management Ltd. raised its holdings in shares of Wolfspeed by 1,158.0% in the 3rd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 833,201 shares of the company’s stock worth $8,082,000 after purchasing an additional 766,971 shares during the period. Finally, Dimensional Fund Advisors LP raised its holdings in shares of Wolfspeed by 30.5% in the 2nd quarter. Dimensional Fund Advisors LP now owns 637,581 shares of the company’s stock worth $14,513,000 after purchasing an additional 149,093 shares during the period.

Wolfspeed Price Performance

The business’s fifty day simple moving average is $7.53 and its 200-day simple moving average is $11.34. The company has a current ratio of 3.14, a quick ratio of 2.54 and a debt-to-equity ratio of 9.82. The firm has a market cap of $782.22 million, a P/E ratio of -1.03 and a beta of 1.43.

Wolfspeed Company Profile

Wolfspeed, Inc operates as a powerhouse semiconductor company focuses on silicon carbide and gallium nitride (GaN) technologies in Europe, Hong Kong, China, rest of Asia-Pacific, the United States, and internationally. It offers silicon carbide and GaN materials, including silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide wafers to manufacture products for RF, power, and other applications.